Brian Brooks, head of the Office of the United States Currency Controller (OOC) until mid-January 2020, made several statements to Coindesk about the case between the SEC and Ripple.
Brooks, like several other market experts, believes that the legal dispute between Ripple Labs and the US Securities and Exchange Commission (SEC) will most likely be resolved.
Brooks also expressed optimism that cryptocurrencies will see positive regulation under the direction of new US President Joe Biden, as he has built a tech-savvy team. But Biden also appointed Janet Yellen as Treasury Secretary in January, reiterating her tough stance on Bitcoin and cryptocurrencies in general. Brooks said the following about Biden’s team:
“If it’s true that Michael Barr is the next person to come to OCC after me, I think he will have a similar thesis to mine. He has a history of spending some time on the Ripple advisory board, for example. Yellen, on the other hand, said relatively skeptical things. So I don’t think it’s part of the problem, it’s more about who is adopting technology, who is innovative and who isn’t. ”
Brooks avoided the question of whether XRP is a security under US law. But like some other experts, he addressed the question of when the problem should be studied. As Brooks has revealed, XRP is likely to have a very different valuation basis from when it was first released in 2021:
“I can tell you what I think is the most important issue with XRP: There is a difference between the way an asset is distributed at a given moment and the nature of an asset. And I think the problem that has disappeared in all the discussions about Ripple is what happened 10 years ago in the original distribution of XRP tokens and whether it was an unregistered security. This is what the courts will decide. This is a different question today, whether XRP is a security or not. And the SEC itself said that assets could change their nature over time as they benefit and achieve decentralization. ”
In the end, Brooks didn’t miss an opportunity to make a prediction on the outcome of Ripple’s lawsuit against the SEC. Brooks, like lawyers Stephen Palley, Jeremy Hogan, Jesse Hynes, Joseph Grundfest, and former SEC officials Joseph Hall and Joseph Grundfest, also consider a settlement to be the most likely outcome. In the meantime, Ripple’s XRP escrow accounts could become a central issue in the deal:
“If I have to make a guess, I will make a quick guess, and somewhere here is that the deal has to be a deal that has to do with the distribution of the token so that existing token holders can continue to trade them and find value as they do.”
As a result, a deal between Ripple Labs and the SEC seems to be the most likely outcome of the lawsuit, according to former OCC chief Brooks.